Vietnam’s increasing environmental pollution is offering big windfalls to many companies.
German-backed KSB group, specialised in producing and exporting industrial equipment, is among many foreign enterprises thinking big about investing in Vietnam’s air, dust and waste water treatment.
“We have a representative office in Ho Chi Minh City. We may set up an equipment manufacturing factory in the country at the end of this year or next year,” said Traugott Ulrich, head of KSB group’s start-up projects.
Global Aurecon group said environmental pollution was a big menace to Vietnam, “but it is creating many investment opportunities to investors like us,” said an Aurecon Vietnam company representative.
She said the company planned to engage in Vietnam’s water treatment sector.
Alba Management GMBH Group, one of Germany’s leading groups operating in waste treatment, recyclables trading and facility management, is also upbeat about Vietnam’s market.
“We are operating at more than 200 locations within Germany and 10 other European countries. We provide raw materials and equipment worldwide. Vietnam is also listed in our export market expansion plan,” said Alba vice spokesperson Susane Jagenburg.
Over the past few years, local authorities have uncovered and fined many enterprises damaging the environment. Many polluters are foreign enterprises and business hubs like Ho Chi Minh City, Binh Duong and Dong Nai are considered Vietnam’s biggest black spots. Thus, these localities have many companies providing environmental protection technologies. For example, Ho Chi Minh City has 300 companies of this type.
Ho Chi Minh City-based locally-owned Hiep Luc Company Limited, specialised in manufacturing products and equipment for water works and water treatment plants, said many Japanese companies in Vietnam had since last year bought waste water treatment equipment from the company.
“The value of the contracts mounted to hundreds of thousands of US dollars,” said Nguyen Duc Thang, a company representative. “More polluters mean more business opportunities for us,” he said.
Ho Chi Minh City-based local firm Chau Phu Company Limited, engaging in manufacturing equipment for ventilation, dust collection and anti-pollution, has also hit big jackpots.
“Since early this year, we have landed 13 contracts with many enterprises from Japan, South Korea and China, to supply them with waste water treatment equipment. The total value of the contract mounted to over $500,000,” said Lu Thanh Long, head of the company’s marketing section.
“The number of contracts is expected to continue increasing, because many enterprises are concentrating on improving their waste waster treatment and dust discharging systems,” Long said.
Nguyen Thi Minh Nguyet, representative from the city’s SEEN Technology Corporation, said that the company’s growth rate in 2010 was expected to be 40 per cent against 2009. Since early this year, the company has landed waste water treatment contracts worth over VND200 billion ($10.2 million), with many local and foreign enterprises.
Nguyet said the company would concentrate on large-scaled waste water treatment projects in the central and southern regions, with an average profit rate of 30 per cent for each project.
